XTO Energy and ExxonMobil Sign Farm-Out Agreement to Development Piceance Basin Acreage
biz.yahoo.com
Thursday June 30, 8:30 am ET
FORT WORTH, Texas, June 30 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE: XTO) announced today it has executed an agreement with Exxon Mobil Corporation (NYSE: XOM) to develop acreage in the northeastern portion of the Piceance Basin in northwest Colorado. The arrangement will allow ExxonMobil and XTO to leverage their respective strengths to maximize the value of these assets.
Under the terms of the deal, XTO will farm-in approximately 69,500 contiguous gross acres east of ExxonMobil's Piceance Creek Unit in Rio Blanco and Garfield counties. XTO Energy will operate and earn 50% working interest ownership in the entire leasehold position by drilling four wells. XTO anticipates the first well, targeting the Williams Fork (Mesaverde) formation, to commence drilling by year-end 2005.
"This deal highlights another success in partnering with the majors to create mutually beneficial opportunities -- whether acquisitions, trades or joint ventures," stated Bob R. Simpson, Chairman and Chief Executive Officer. "XTO Energy has earned a solid reputation with our operational track-record. We are proud that our team will put its expertise, focus and determination to work on this project."
Keith A. Hutton, President, further comments, "The Piceance Basin is an ideal addition to our tight-gas and unconventional property base. This acreage position exposes XTO to a portion of the trillions of cubic feet of natural gas the basin is projected to hold. Now, we move forward with our drilling plans, evaluate the results and look towards successful execution for the future." |
